SA-based developer Qattro was placed into liquidation on Tuesday, with the company blaming supply chain and labour shortages for causing blow-outs to fixed-price construction contracts.

Qattro managing director Bradley Jansen says the business will focus all its efforts on completing the under-construction homes.

“I am devastated to make this decision after three exceedingly difficult years of efforts trying to recover the post-Covid financial sustainability of the company,” he said.

Jansen apologised for the “significant impact” the closure will have on long-term employees, clients and contractors.

The construction industry has struggled to meet rising costs, despite the surging demand for housing.

Fellow South Australian builder Felmeri Homes went into liquidation in May, halting the construction of dozens of houses, while the collapse of Sydney-based developer Toplace and Victorian builder Porter Davis plunged thousands more dwellings into uncertainty.

Because businesses often lock in the price of a contract years before construction is completed, they are vulnerable to sudden cost increases making projects unprofitable.

“The reality is that selling something under contract for $1.00 that costs $1.20 to produce can only go on for so long,” Jansen said.

“It is a deeply troubling time for the sector when shortage of housing supply is in lock-step with supply side degradation.”

The Qattro announcement comes at an awkward time for the South Australian government, which needs a healthy construction sector to help deliver its ambitious social housing pipeline.

SA Housing Minister Nick Champion welcomed the passage of the Housing Australia Future Fund on Monday, saying the federal government initiative would help the state fast-track an extra 564 public homes.

“We have made it clear delivering more safe, secure and affordable homes for South Australians is our priority and are ready to deliver these projects as soon as possible,” Champion said on Tuesday before the news of Qattro’s downfall.

-AAP